Standard Life Investments is reported to have agreed a £75 million joint venture acquisition and development deal for a prominent Edinburgh city centre site.

Trade magazine Property Week reports Standard Life Investments Pooled Property Fund has agreed a joint venture with Peveril Securities to buy the site at 3-8 St Andrew Square on the south west corner of St Andrew Square at the east end of George Street.

They will now push ahead with a speculative 165,000 sq ft mixed-use development scheme which includes offices, retail and catering units and residential flats.

Work on the development is expected to begin immediately and is expected to complete in 2016.

David Stewart, fund manager of Standard Life Investments Pooled Property Fund, said: “This development is a terrific opportunity to capitalise on the current constrained supply and improving occupier demand within Edinburgh.

“The property is in an absolutely prime location and we will be creating a first class long term investment for our investors.”